Citibank-HCL BPO enter a new deal, to hire 800 employees

The BPO wing of HCL Technologies [HCL stock quote] was launched in 2001. Since then, the BPO arm of the company has delivered business services that speak for its quality and also been a pioneer in third party BPO operations delivering services in varied sectors.

With over a decade of experience in the industry, HCL technologies’ BPO wing has entered into a contract with Citibank to offer help in new processes to be launched by the bank in August.

Citibank-HCL BPO – The Deal

HCL-BPO has signed a deal with Citibank to offer business process solutions for its new venture set to begin this August. HCL-BPO will be delivering its services for Citibank in processing loans, customer service and financial products.

The company is said to be hiring 800 employees to be inducted into the processes of its new deal. Recruitment of employees has been taking place since June, according to sources. It is also seen that both parties of the contract, HCL and Citibank declined to comment on it.

HCL has also clinched a $250 million deal in outsourcing from Union Bank of Switzerland (USB). This deal includes setting up of off-shore delivery centers to be centered in Bangalore and hiring 1,000 people to be involved in outsourcing processes. HCL is also eyeing financial services and insurance, banking sectors.

On the other hand, Citibank is currently looking to diversify its tie-ups and look beyond TCS. The company is on a hunt for new partners, says Amneet Singh, the Vice-President of Outsourcing at Global Advisory firm, Everest Group. He also said financial institutions at the global level are looking for offshore investments which would yield high revenue.

There are a number of global financial institutions who do proprietary jobs carrying high-value in their own centers and outsource services like data management and IT support to third parties. The BPO services are now growing high in value and are undertaking complex jobs in a number of areas like financial services, analytics and more.

The numbers reported are better particularly when it comes to Integrated BPOs; these are the ones that combine IT and BPO sectors. For example, the BPO arm of Infosys is expected to grow three fold in the current financial year even though the company has lowered its guidance to 5%. The same is expected of HCL, whose BPO units have outperformed with increasing revenue of 2.5% in the March quarter.

HCL’s deal beats expectations

The analysts estimate say the HCL-Citibank deal would earn HCL revenue of $200 billion. Also, the deal with Union Bank of Switzerland has fetched the company $250 million. In total, HCL-BPO has over $450 million worth of deals in its kitty and the company will soon be hiring around 1,800 employees to work on both the projects.

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